Chapter 1 Planning Rev

8/12/2019 Chapter 1 Planning Rev

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SDLCis the process of understanding how aninformation system (IS) can support businessneeds, designing the system, building it anddelivering it to users.

It has four standard phases which include: Planning

Analysis

Design

Implementation

After the four phases are executed, some projectteam perform Maintenance as the last phase.

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Each phase is itself composed of a series ofsteps, which rely on techniquesthat producedeliverables. Deliverablesare specific documents and files that

provide understanding of the project.

Two important points to understand SDLC Get a general sense of the phases and steps that IS

projects move through

It is important to understand that the SDLC is aprocess of gradual refinement.

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It is the fundamental process ofunderstanding why an information systemshould be built and determining how theproject team will go about building it.

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During project initiation, the systems

business value to the organization isidentified how will it lower the costs orincrease revenues?

Most ideas for new systems come from

outside IS area in the form of a systemrequest. System request presents a brief summary of

business in need and it explains how a systemsupports the need will create a business value.

Feasibility analysis examines key aspects of theproposed project : technical, economic andorganizational

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During project management, the projectmanager creates a work plan, staffs theproject, and puts techniques in place to helpthe project team control and direct the

project through the entire SDLC.

Deliverable for project management is projectplan that describes how the project team willgo about developing the system

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It answers the questions of who will use thesystem, what the system will do, and whereand when it will be used.During this phase,the project team investigates any current

system(s), identifies improvementopportunities, and develops a concept for thenew system.

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Analysis strategy.It is developed to guide theproject teams efforts. Such a strategy usuallyincludes an analysis of the current system and itsproblems, and of proposed ways to design a newsystem.

Requirements gathering. The analysis of this

informationin conjunction with input from theproject sponsor and many other peopleleads tothe development of a concept for a new system.

Thesystem proposal which is presented to the

project sponsor and other key decision makerswho will decide whether the project shouldcontinue to move forward. It is the initialdeliverable that describes what businessrequirements the new system should meet.

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System proposal is initial deliverable thatdescribes what business requirements thenew system should meet.

The deliverable from this phase is both ananalysis and a high-level initial design for thenew system.

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In this phases it is decided how the systemwill operate, in terms of the hardware,software, and network infrastructure; the userinterface, forms, and reports that will be

used; and the specific programs, databases,and files that will be needed.

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Design Strategy. This clarifies whether the systemwill be developed by the companys ownprogrammers, development will be outsourced toanother firm or the company will buy an existingsoftware package.

Architecture Design. This describes the hardware,software, and network infrastructure that will be

used. Interface design specifies how the users willmove through the system and the forms andreports that the system will use.

Database and File Specifications. These documentsdefine what and where the data will be stored.

Program Design. Defines what programs need to bewritten and what they will do.

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This collection of deliverables (architecture

design, interface design, database and filespecifications and program design) is thesystem specification

that is handed to theprogramming team for implementation.

At the end of the design phase, the feasibilityanalysis and project plan are reexamined andrevised and another decision is made by the

project sponsor and approval committeeabout whether to terminate the project orcontinue.

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Final phase in SDLC During which the system is actually built (or

purchased, in the case of a package softwaredesign).

This is the phase that usually gets the mostattention, because for most systems it is thelongest and most expensive single part of thedevelopment process.

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System Construction. The system is built and

tested to make sure it performs as designed.Testing is one of the most critical steps inimplementation.

Installation. The process by which the old system

is turned off and the new one is turned on. Atraining plan is made to teach users how to usethe new system and help manage the changescaused by the new system.

Support Plan. This plan usually includes a formal

or informal post-implementation review, as wellas a systematic way for identifying major andminor changes needed for the system.

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It involves performing changes, corrections,additions, and upgrades to ensure the systemcontinues to meet the business goals. Thisphase continues for the life of the system.

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Build a help desk to support the system users. A helpdesk is a group of people who respond to internalsystem user questions. Typically, internal systemusers have a help desk extension or phone numberthey call when they have issues or questions aboutthe system.

Perform system maintenance. It is fixing or enhancingan information system. Many different types ofmaintenance must be performed on the system toensure it continues to operate as expected.

Provide an environment to support system changes.

An organization must react to those changes byassessing the impact on the system. It might well bethat the system needs to adjust to meet the ever-changing needs of the business environment.

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A project is identified when someone in theorganization identifies a business need to build a

system.

A project sponsor is someone who recognizesthe strong business need for a system and has aninterest in seeing the system succeed. He or she

serves as a primary point of contact for thesystem on the business side. The project sponsor should have an idea of the

business value to be gained from the system, inboth tangible and intangible ways.

Tangible value can be quantified and measureeasily. Intangible value results from an intuitive belief

that the system provides important, but hard-to-measure, benefits to the organization

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System request is a document that describes thebusiness reasons for building a system and the

value that the system is expected to provide. Five key elements of a System request

Project sponsor is the person who initiates the projectand serves as the primary contact for the project.

Business need is the business-related reason forinitiating the project.

Business requirements are the business capabilitiesthat the system will provide.

Business value are the benefits that the system will

create for the organization. Special issues or constraints are the issues that are

relevant to the implementation of the system thatneed to be known by the approval committee.

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Approval committee could be a companysteering committee that meets regularly tomake information systems decisions. Thecommittee reviews the system request and

makes an initial determination of whether toinvestigate the proposed project or not.

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It guides the organization in determining whetherto proceed with a project . It also identifies theimportant risks associated with the project thatmust be addressed if the project is approved.

Three areas assess in Feasibility Analysis:

Technical Feasibility

Economic Feasibility

Organizational Feasibility

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The extent to which the system can besuccessfully designed, developed, andinstalled by the IT group. It is a technical riskanalysis that strives to answer the question:

Can we build it Familiarity with the application

Familiarity with the technology

Project size

Compatibility of the new system with thetechnology that already exists in the organization.

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It is also called a cost-benefit analysis. It

identifies the financial risk associated with theproject. This attempts to answer the questionShould we build it .

Identify Costs and Benefits

Development costs are those tangible expenses that areincurred during the creation of the system. They areusually thought as one-time costs.

Operational costs are those tangible costs that arerequired to operate the system. They are usually thoughtas on-going costs.

Tangible benefits include revenue that the systemenables the organization to collect, such a increasedsales.

Intangible benefits are based on intuition and beliefrather than on hardnumbers

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Assign values to Costs and Benefits

The most effective strategy for estimating costsand benefits is to rely on the people who have thebest understanding of them.

It may be useful to estimate a range of values for

the cost or benefit and then assign a likelihood(probability) estimate to each value.

Sometimes, it is acceptable to list intangiblebenefits without assigning a value. Other times,estimates have to be made regarding how muchan intangible benefit is worth. It is suggested toquantify intangible costs or benefits if at allpossible.

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Determine Cash Flow

Forecast what the costs and benefits will be overa certain period, usually, three to five years.

Cash flow method, the years are listed across thetop of the spreadsheet to represent the period ofanalysis, and numeric values are entered in the

appropriate cells within the spreadsheets body.

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Assign rojectsEconomic Value

Evaluate the projects expected returns incomparison to its costs. Techniques to be used areas follows:

Determine Return on Investment ROI) ROI is acalculation that measures the average rate of returnearned on the money invested in the project.

Determine Break-even Point BEP) BEP also calledthe payback method, defined as the number ofyears it takes a firm to recover its originalinvestment in the project from net cash flows.

Determine Net Present Value NPV) NPV is used tocompare the present value of all cash inflows andoutflows for the project in todaysdollar terms.

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It refers on how well the system ultimatelywill be accepted by its users and incorporatedinto the ongoing operations of theorganization. It attempts to answer the

question If we build it, will they come . Strategic alignment is the fit between the

project and business strategythe greaterthe alignment, the less risky the project will

be, from an organizational perspective. Howwell the goals of the project align withbusiness objectives.

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Documents

Chapter 1 Planning Rev